You are creating the bullet sprites at the image point 1 of the sprite enemy001, but you haven't defined the image point 1 on the enemy001 sprite. To add an image point, just open the enemy001 sprite and click on the image point button and set it to where ever you want.

Thanks for checking. I did that when I made the ship and double checked my copy and the indicator is there. I did reclick it and now it works as your copy does. So now I am not sure why it did not work before. When you opened mine, did you not see the image hotspot there? Is there some way to confirm it takes when I click the spot?Thanks for confirming.